Partnerships and a Pinch of Amazon: Early Signs of the Future of Insurance?

At the beginning of this week QEII Centre in London hosted the 18th edition of the Insurance Innovators Summit. Most believe Measuring the scale of Amazon’s threat to the insurance industry

"A few select incumbents like AXA-Asia are already showing an innovation mindset and are partnering with technology providers in trying to reach new customers, yet the bulk of the industry shows little urgency to follow their lead." InsurTech News Nov. 9th 2018

Yet there is no excuse to lag behind especially as McKinsey presents evidence that just four to five insurers in each sector that transform their business and technology models will corner the majority of customers, earned premiums and profits. There is only room for first movers and fast followers.

No excuse and time to act now before you become one of the long tail of slow followers fighting for a dwindling share of premiums and profits

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Amazon is seen as the biggest threat, with two out of five of our respondents expecting the online retailing and web services giant to have the most disruptive impact on the EU general insurance market in the next five years. In August 2018, Reuters reported that Amazon was sounding out leading insurance firms to see if they would contribute products to a UK price comparison website, a report that pushed shares in existing comparison sites lower. The survey respondents are clear that these concerns are not only justified but should be shared by players across the insurance industry. 82 per cent think that if Amazon moves into insurance it will ultimately be into the whole of the insurance value chain.